Investing in large cap mutual funds is a strategic move for those looking to build wealth with stability over the long term. These funds primarily invest in well-established companies with a strong market presence, offering relatively lower risk compared to mid-cap and small-cap funds. If you’re planning to invest in 2025, it’s crucial to choose the best mutual funds that align with your financial goals.
In this blog, we will explore the top large cap mutual funds and help you make an informed decision.
What Are Large Cap Mutual Funds?
Large cap mutual funds invest in the top 100 companies listed on the stock exchange in terms of market capitalization. These funds provide stability, consistent returns, and lower volatility, making them an excellent choice for long-term investors.
Best Large Cap Mutual Funds to Invest in 2025
If you’re considering investing in large cap mutual funds in 2025, here are some top-performing options:
1. SBI Bluechip Fund
- AUM: Over ₹35,000 crores
- 5-year CAGR: ~13%
- Suitable for long-term investors seeking stability and steady growth.
2. ICICI Prudential Bluechip Fund
- AUM: Over ₹40,000 crores
- 5-year CAGR: ~14%
- Invests in high-quality large-cap stocks with growth potential.
3. HDFC Top 100 Fund
- AUM: Over ₹30,000 crores
- 5-year CAGR: ~12.5%
- Focuses on well-established companies with strong financials.
4. Mirae Asset Large Cap Fund
- AUM: Over ₹35,000 crores
- 5-year CAGR: ~15%
- Strong track record of delivering consistent returns.
5. Axis Bluechip Fund
- AUM: Over ₹25,000 crores
- 5-year CAGR: ~14%
- Prefers high-growth large-cap stocks with a long-term perspective.
Direct vs Regular Mutual Fund – Which One Should You Choose?
One of the most important decisions investors need to make is whether to opt for a direct or regular mutual fund. Here’s a quick comparison:
| Feature | Direct Mutual Fund | Regular Mutual Fund |
|---|---|---|
| Expense Ratio | Lower | Higher |
| Returns | Higher | Slightly Lower |
| Intermediary Involvement | No | Yes |
| Best For | Experienced investors | Beginners seeking guidance |
If you are confident in managing your investments, a direct plan is more cost-effective. However, if you prefer expert advice, regular plans are a suitable choice.
Loan Against Property Tax Benefits
Many investors opt for a loan against property (LAP) to fund their investment goals. Here are some tax benefits associated with LAP:
- Tax Deduction on Interest Paid: If you use the loan for business purposes, the interest paid is deductible under Section 37(1) of the Income Tax Act.
- No Tax Benefits for Personal Use: If the loan is taken for personal expenses, no tax benefits apply.
- Deductions Under Section 24(b): If the loan is used for purchasing another property, interest payments are eligible for deductions.
How to Invest in Large Cap Mutual Funds?
Investing in mutual funds is easier than ever with the availability of online investment platforms in India. Follow these steps:
- Choose a reliable investment platform.
- Compare large cap mutual funds based on past performance and expense ratio.
- Select direct or regular plans as per your investment knowledge.
- Start investing via SIP or lump sum as per your preference.
Conclusion
Large cap mutual funds are an excellent choice for long-term investors seeking stability and consistent returns. Before investing, evaluate factors such as fund performance, expense ratio, and fund manager expertise. Start your investment journey today through trusted online investment platforms in India like Divadhvik and build a secure financial future.
Yes, large cap mutual funds offer stability, lower volatility, and consistent returns, making them ideal for long-term investment.
2. Can I switch from a regular mutual fund to a direct mutual fund?
Yes, you can switch from a regular mutual fund to a direct mutual fund, but it may attract capital gains tax and exit loads depending on the fund’s terms.
